PSR has announced that it has issued a Statement of Objections that alleges that Mastercard, allpay, APS, PFS and Sulion engaged in anti-competitive behaviour by agreeing not to compete or poach each other’s clients...
Category - Topics
Stephen WilsonFCA extends financial crime reporting obligation
Following its consultation in August 2020, the FCA has announced it is increasing the number of firms that need to submit an annual REP-CRIM return from c.2,500 to c.7,000 firms. In summary, the following additional...
Emma RadmoreUK and US continue to co-ordinate on insurance and reinsurance supervision
On 25 March 2021, UK and US participants held the first Joint Committee meeting under the UK-US Bilateral Agreement on Prudential Measures regarding Insurance and Reinsurance (Agreement). Attendees discussed progress...
ESMA fines Moody’s for conflict of interest breaches
ESMA has fined five entities in the Moody’s Group, based in France, Germany, Italy, Spain and the UK, a collective total of €3,703,000 and issued public notices for breaches of the Credit Ratings Agencies Regulation...
EIOPA publishes IDD “general good” analysis
EIOPA has analysed Member State rules implementing the IDD and identified some practices that are not in the interests of the general good. For example, it has asked some Member States to adjust their requirements where...
Emma RadmoreCMA writes to Danske Bank on bundling breach
Danske Bank required 305 of its SME customers to open a business current account in order to progress their application for a loan under the Bounce Back Loan Scheme. The CMA has now written to Danske Bank to explain...
ESMA updates funds FAQs
ESMA has updated its FAQs in respect of the AIFMD and the UCITS Directive, both in respect of performance fees.
FCA confirms DB transfer guidance
FCA has confirmed its finalised guidance on DB transfers for advisers. The guidance does not show many changes from the version on which FCA consulted. It confirms FCA’s view that it is normally in the best...
FCA and PRA publish operational resilience materials
FCA and PRA have each published a number of documents addressed to firms across a range of sectors on the subject of operational resilience. FCA and PRA have each issued policy statements (PS21/3 and PS6/21) which...
UK/EU Technical Discussions on MoU concluded
Treasury has announced that the technical discussions on the text of the UK/EU financial services regulatory MoU have concluded. Now the formal steps needed to actually sign up to the MoU can hopefully happen quickly.
FCA takes action against non-financial misconduct
The FCA has published a decision notice in respect of Jon Frensham (formerly known as Jonathan James Hunt), an independent financial adviser and sole director at Frensham Wealth Limited. In March 2017, Mr Frensham was...
FCA responds to Treasury Committee on LCF
Andrew Bailey has responded to the Treasury Committee on aspects of its supervision in respect of the LCF investigation. Key elements of the response looked at: the need for the report to separate accountability with...
FCA feeds back on Open Finance
FCA has published a policy statement following its call for input on Open Finance. The statement looks at how Open Banking is paving the way for more innovation, and notes the large number of regulatory sandbox...
High Court finds company and individual in breach of FSMA
The High Court has delivered a summary judgement after FCA issued proceedings against 24HR Trading Academy Limited and Mohammed Maricar, who ran the firm. It found the firm breached FSMA by providing unauthorised...
PRA issues policy statement entitled “Depositor protection: Identity verification”
The PRA has issued a policy statement entitled “Depositor protection: Identity verification” which provides feedback to consultation paper (CP) 3/21 on the same subject. The final policy set out in the...
CMA publishes annual plan for 2021/2022
Following consultation, the CMA has now published its annual plan for 2021-2022. The CMA has identified four key themes on which it intends to concentrate: protecting consumers and driving recovery during and after the...
European Parliament reports on Digital Finance Package legislation
The European Parliament’s Committee on Economic and Monetary Affairs has published a draft report setting out proposed changes to a range of existing legislation to ensure alignment with the regulation on digital...
Treasury updates high risk jurisdictions list
Treasury has updated its AML advisory notice on high risk jurisdictions. The UK is introducing legislation that will define high risk third countries and will replicate the FATF list, in place of referencing the EU MLD4...
PSR publishes plan and budget
The PSR’s annual plan and budget for 2021/22 focuses on what it can do to improve outcomes by encouraging innovation and competition. It will look at scam prevention and access to cash, and will have a focus on...
EU consults on instant payments
The European Commission has launched a targeted consultation on instant payments. Open until 2 June, the consultation seeks to get technical information from PSPs and providers of technical services, with a view to the...
Government urged to reduce barriers to UK-EU services trade
The House of Lords EU Services Sub-Committee has published a report which examines the UK-EU Trade and Cooperation Agreement (TCA) and the future UK-EU relationship on trade in services. In terms of financial services...
FCA encourages individuals to report wrongdoing
The FCA has launched its campaign ‘In confidence, with confidence’ to encourage individuals working in financial services to report potential wrongdoing to the FCA. The campaign highlights circumstances...
FIN. TeamFCA updates on non-damage BI settlements and deductions
FCA has updated its guidance aimed at insurers who have made deductions from business interruption insurance claim payouts for some types of Government support that policyholders benefited from. Back in August 2020, FCA...
FATF updates guidance on risk-based approach to VAs and VASPs
FATF is updating its guidance on the risk-based approach to virtual assets (VAs) and virtual asset service providers (VASPs). The guidance is updated in six key areas and amendments seek to: clarify the definitions of...
EIOPA publishes IDD FAQs
EIOPA has updated its FAQs on the IDD. The 8 new questions cover: the appropriateness assessment product oversight and governance; adaptation of existing product; protect testing and review for existing products;...
FCA updates on timetable for insurance pricing rules
FCA has updated firms on its plans for the introduction of new rules following its consultation on general insurance pricing practices. It had originally proposed to give firms 4 months from the time it finalised its...
EFMLG and FMLC Joint Letter: LIBOR transition
Together with the European Financial Markets Lawyers Group, on 19 March 2021 FMLC sent a letter to regulatory authorities in key jurisdictions urging cooperation in relation to the discontinuance of LIBOR. Given the...
EU Council backs plans for EU-wide payment solutions
In September 2020, the EU Commission launched its strategy for the further development of the retail payments market in the EU. The European Council has now responded by announcing its full support of the overall aims...
FMLC responds on cryptoasset regulation
FMLC has responded to Treasury’s call for evidence on the regulation of cryptoassets and stablecoins. Unsurprisingly, it notes many legal uncertainties, not least how to identify a “token”, and...
IRSG publishes report promoting global regulatory coherence
The International Regulatory Strategy Group (“IRSG“) published a report entitled “Global Solutions to Global Problems”. The report aims to promote regulatory coherence in financial services to...
FCA gives speech on diversity and inclusion
Georgina Philippou, Senior Adviser to FCA on the Public Sector Equality Duty gave a speech at the launch of a report by the Investment Associate and Eversheds entitled “Building Ethnic Diversity and Inclusion in...
HMRC publishes AML supervision self-assessment
HMRC has published its assessment of its own performance as AML supervisor. It notes that it currently supervises over 30,000 businesses across the various sectors within its remit. It says its performance is broadly...
Investment Association reports on diversity
The Investment Association has published a report which sets out steps to improve ethnic diversity and inclusion in investment management. The report found that: 75% of firms currently collect, or have begun work...
EBA consults on AML guideline change
EBA is consulting on changes to its guidance on risk-based supervision for AML/CFT purposes. It plans to include practical step-by-step approaches to help regulators understand some of the aspects of supervision they...
FCA speaks on importance of diversity and inclusion
Nihil Rathi, speaking at Treasury’s Women in Finance Charter Annual review, stressed that diversity and inclusion are regulatory issues. He noted the breadth of characteristics that “diversity”...
PRA confirms holding company fees
PRA has confirmed its position on holding company regulatory fees, and will impose a fee of £2,500 for an application for approval or exemption as a holding company under s192Q FSMA with effect from 19 March.
Regulation of the insurance sector set to change
In a speech given at the Association of British Insurers, Sam Woods, CEO of the PRA, said that the regulation of the UK insurance sector is set to change. Mr Woods stated that rules for insurers would be set out in the...
Complaints Commissioner criticises FCA internal communications
The Financial Services Complaints Commissioner has published a final report in respect of a complaint raised against FCA for failing to keep a complainant informed as to the progress of its investigation into the firm...
FCA takes action against NatWest for MLR breaches
FCA has started criminal proceedings against NatWest for breaches of the MLR 2007. It alleges that, over a 5 year period up to late 2016, the bank breached MLR 8(1), 8(3) and 14(1) in relation to funds deposited into...
Government provides update on Australia free trade negotiations
The Department for International Trade published a press release with an update on the ongoing negotiation of a free trade agreement between the UK and Australia. The fourth round of talks took place between 22 February...
FCA updates on duty of care
In its Feedback Statement on duty of care and potential alternative approaches, the FCA committed to reviewing how it applies the regulatory framework and how new or revised Principles for Businesses could strengthen...
FCA updates BI list
FCA has updated its information pages on business interruption insurance by providing a list of insurers and policies, submitted by insurers, of the non-damage business interruption insurance policies that are, in...
NCA updates SARs guidance for supervisors
NCA has published an updated version of its guidance to AML supervisors on submitting better quality SARs. It reiterates the importance of: the SAR being clear and concise, explicitly setting out the reason for...
Up next from FCA
FCA’s latest Policy Development update heralds the annual consultation on fees in April, and the proposed consultation on exit fees in investment platforms and comparable firms at some stage this year.
FS Bill finishes Lords Committee stage
The Financial Services Bill has finished its discussions at Committee Stage in the Lords. The next stage, the Report stage, has not yet been announced.
FOS head to step down
Caroline Wayman is to step down as Chief Ombudsman and Chief Executive at FOS. FOS will now start the search for her successor.
IHRP review independent report provided to FCA
John Swift QC, the Independent Reviewer appointed to look at FCA’s regulatory interventions in respect of the sale of of Interest Rate Hedging Products to SMEs. has provided FCA with his draft report. It is...
OFSI updates sanctions penalty guidance
OFSI has published an updated version of its guidance on monetary penalties for breach of financial sanctions, which will apply from 1 April and will apply for all cases where OFSI becomes aware of a potential breach...
LSB considers the customer journey in a digital world
In January this year the Lending Standards Board (LSB) released a thought piece on the customer journey in the digital space, with the aim of promoting best practice and good customer outcomes in the provision of...
European Parliament issues draft report on proposed markets in crypto-assets regulation
The European Parliament’s Committee on Economic and Monetary Affairs has issued a draft report containing suggested amendments to the text of a regulation on markets in crypto-assets and amending Directive (EU)...
Treasury seeks clarity on FCA’s regulation of LCF
BoE Governor, Andrew Bailey, gave evidence to the Treasury Committee last month on the FCA’s regulation of London Capital and Finance (LCF). The Committee Chair, Rt Hon. Mel Stride MP, has now written to Mr Bailey...
FCA consults on minor handbook changes
FCA’s latest quarterly consultation paper proposes: changes to COMP to clarify the application of FSCS; and changes to TC to extend the scope of notification requirements, update the appropriate qualifications...
CMA consults on future oversight of open banking
The CMA has published a consultation paper seeking views on what arrangements it would be appropriate to put in place to ensure the effective oversight and governance of open banking following the implementation of the...
FCA announcements on the end of LIBOR
FCA has confirmed that all LIBOR settings will either cease to be provided by any administrator or no longer be representative: immediately after 31 December 2021, in the case of all sterling, euro, Swiss franc and...
Covid-19: FCA updates on support for mortgage customers
The FCA is consulting on proposed updates to its “Mortgages and Coronavirus: Tailored Support Guidance.” The guidance is intended to ensure that mortgage customers whose homes may be repossessed are treated...
FS Bill at Committee Stage in Lords – including new FTP offence
The Financial Services Bill is currently going through line by line scrutiny in the Committee stage in the House of Lords. Among the changes for debate are: an requirement for a member of the FCA governing body to have...
FATF publishes RBA guidance
FATF has published guidance for supervisors in applying a risk based approach to supervision of the AML supervised community. It aims to help those supervisors who have traditionally applied rules-based approaches to...
Proprietary injunction and Bankers Trust Order made in fraud case involving cryptocurrency
In the unreported case of Ion Science Ltd v Persons unknown and others (21 December 2020 – Commercial Court), the Commercial Court granted a proprietary injunction, worldwide freezing order and ancillary...
FCA fines and bans trader for market abuse
FCA has fined and banned a former market making trader for market abuse. Adrian Horn, formerly of Stifel Nicolaus Europe Limited executed trades with himself in a series of 129 wash trades in a particular security over...
FCA updates TPR pages
FCA has updated its website to help firms in the TPR understand what is coming next. Among other things, it has started to email firms about their landing slots. It cautions that firms should not apply before their...
FCA increases contactless payment thresholds
FCA has published a policy statement outlining the amendments to Article 11 of the strong customer authentication RTS. The changes increase the single transaction threshold for contactless payments from £45 to £100 and...
FCA publishes “presence of Covid” guidance
FCA has finalised and published its guidance on proving the presence of Covid-19. The guidance builds on the High Court and Supreme Court judgments in the FCA’s business interruption insurance test case, and sets...
Budget 2021: Chancellor outlines BoE remit
Rishi Sunak has written to BoE Governor, Andrew Bailey, outlining the remit and recommendations for the Financial Policy Committee (FPC) for 2021. The FPC should: support the government in maintaining the resilience and...
EBA publishes ML risk opinion
EBA has published its biennial opinion on the ML and TF risks affecting the EU financial sector. The risks cover those of the whole sector as well as parts of it, and cover risks previously identified as well as new...
Sign up now: what’s new in financial crime prevention 10 March
In a change from the normal, we are hosting the first quarterly update of 2021 for MLROs.com. Sign up here and see you at 9:00 on 10 March.
FCA publishes funeral plan consultation paper
The FCA has published a consultation paper on its proposed approach to the regulation of pre-paid funeral plans. Such plans are due to become fully subject to FCA regulation from 29 July 2022. The majority of the...
EU and Japan exchange letters on co-operation
The European Insurance and Occupational Pensions Authority (EIOPA) and Japan’s Financial Services Agency (FSA) have agreed to co-operate on insurance regulation and supervision. The exchange of letters aims to...
FCA publishes details of STORs
FCA has published the number of STORs it received in 2020. There was a small dip at the beginning of the pandemic, but the amounts increased as the year went on, peaking at 421 in October, with a total of 3553 for the...
EBA revises guidelines on AML/CFT risk factors
EBA has published updated guidelines on money laundering and terrorist financing risk factors under MLD4. The changes: take account of legislative change; address new risks; strengthen the risk based approach; specify...
LSB sets roadmap for CRM Code review
LSB has published its planned activities for 2021 including updates on the wording of the CRM Bode and a call for input. Separate to its original plans it is already working on a review of the provision on its approach...
Home Office launches Modern Slavery statement registry
The Home Office has updated its guidance page on modern slavery statements following the launch of its new voluntary registry. The registry launched on 23 February, but the page was not active at the time we checked...
FATF publishes plenary outcome
FATF has published the outcome of its February plenary meeting. it approved new guidance on risk-based supervision; it will update its guidance on virtual assets and VASPs; it has agreed new guidance on proliferation...
FCA publishes MiFID 2 product governance review
FCA has published the results of a review that looked at product governance in 8 asset management firms who are manufacturers of products. It examined particularly how the firms take into account the interests of end...
FCA finalises Breathing Space rule changes
FCA has published its final changes to CONC to clarify how its rules apply where the Breathing Space Regulations also apply. Its aim is to avoid any unnecessary duplication of requirements. The Regulations allow ...
Treasury publishes Kalifa Fintech Review
Treasury has published the Kalifa Review of UK Fintech, which launched last summer. The report sets out proposals for the UK to build on its existing strengths in the sector. The review looks at the development...
Treasury and FCA discuss perimeter report
Treasury and FCA have met to discuss the September 2020 report on the regulatory perimeter. Discussions focused on: high risk investments and the potential need to review the current exemptions that allow marketing to...
FSB writes to G20 on 2021 work programme
FSB has published its work programme for 2021, which focuses on: addressing vulnerabilities resulting from the pandemic; increasing the resilience of non-bank financial intermediation; improving efficiency and access in...
ESMA publishes crowdfunding FAQs
ESMA has published its first FAQs on the new crowdfunding Regulation, looking at SPVs and how they can be used in crowfunding models.
FCA appoints new executives
FCA has appointed four new members of its executive team to help drive its transformation: Stephanie Cohen as the COO Jessica Rusu as Chief Data, Information and Intelligence Officer Sarah Pritchard as Executive...
PRA corrects MRT definition
PRA has noted a mistake in the Rulebook definition of “higher paid material risk taker” in Rule 1.3 of the Remuneration Part. The definition currently states that a person will be an HPMRT where: (a) their...
PRA clarifies credit risk approach
PRA has clarified its approach to published EBA Guidelines and EU RTS in relation to credit risk following the end of the Brexit transition period. PRA had thought that the RTS on economic downturn would have been made...
CMA publishes PPI breach letter
CMA has written to Cardif Pinnacle about two breaches of the PPI order. The breaches mean that nearly 5,000 customers have been receiving inaccurate Annual Reviews since 2012, an 4 customers received annual reviews that...
EBA calls for supervisory action to remove account access hurdles
EBA has published an opinion calling on regulators to ensure banks remove any remaining obstacles that are stopping third party providers from accessing payment accounts. It stresses the need for a consistent...
BoE writes to banks on resolvability framework
BoE has written to banks on resolvability assessment framework preparations. The framework set out what banks need to do for the BoE to consider them “resolvable”. Submissions are due in October, and BoE is...
FCA recovers £3.4m for scam victims
FCA has obtained approval from the High Court to return over £3.4m which it has recovered from various accounts relating to two schemes that were unauthorised CIS and deposit-taking schemes, purporting to involve the...
BoE updates on data collection
The Bank of England has published its paper and the way forward for data collection. As more data than ever is created and captured, and expectations on regulators become greater, current systems of collection have been...
FCA finalises vulnerability guidance
FCA has finalised its guidance on its expectations of firms in respect of vulnerable customers. The guidance stresses that FCA expects firms to ensure consumers have the appropriate degree of protection, and that key to...
UK Finance publishes sanctions SI analysis
UK Finance has published a detailed study of the differences between the current UK statutory instruments relating to financial sanctions and their pre-Brexit equivalents. It has conducted a comparison to assess the...
Business Banking Resolution Service goes live
The BBRS, which 7 banking groups have so far signed up to, will work to resolve complaints from larger SMEs. The scheme involves: the contemporary scheme for businesses with turnover of up to £10m per year and a balance...
PRA reports on positive iNED meetings
PRA has written a letter to iNEDs, who participated in its pilot programme of virtual meetings. The meetings discussed current challenges, and PRA was pleased that, in principle: iNEDs thought firms had reacted well to...
BI insurance declarations submitted to Supreme Court
FCA and the other parties to the test case have made submissions to the Supreme Court on the form of declarations. FCA has published a draft of the declarations, showing what is agreed and what is still in dispute...
HM Treasury launches consultation on supporting the wind-down of critical benchmarks
HM Treasury has launched a consultation on the case for additional legal protections for parties affected by the wind-down of a critical benchmark. On 21 October 2020, the government introduced the Financial Services...
UK Finance publishes guide for banks and lenders on discontinuation of LIBOR
UK Finance has published a guide for banks and lenders on the discontinuation of LIBOR. This is intended as a toolkit for members to support their engagement for the move away from LIBOR and to sign post to the relevant...
EIOPA shares views on improving BI cover
EIOPA has published a staff paper on how to improve the insurability of business interruption in the light of pandemics. It is urging insurers to promote prevention measures which will improve society’s capacity...
PRA consults on Basel implementation
PRA is proposing a new CRR rule instrument to implement part of the Basel standards that still need to be implemented in the UK. The consultation forms part of a wider exercise to transfer the text of existing rules...
FCA updates on cancellations and refunds guidance
FCA has updated its webpages and finalised guidance on how it expects credit and debit card and insurance providers to deal with requests for refunds following cancellation of trips, events and holidays as a result of...
National Courts can order parties to re-negotiate unfair terms, says the CJEU
In Banca B. SA v A.A.A (Case C 269/19) ECLI:EU:C:2020:954 the First Chamber of the Court of Justice of the European Union (CJEU) has held that National Courts can facilitate negotiations to replace an unfair term where...
The Unfair Contract Terms Directive is challenged but holds firm
In the case of Dexia Nederland BV v XXX and Z , the Court of Justice of the European Union (CJEU) gave judgment in two cases relating to the provisions of The Unfair Contract Terms Directive (93/13/EEC). The directive...
Consultation on successor rate in legacy bonds referencing GBP LIBOR
The Working Group on Sterling Risk Free Rates has published a consultation paper seeking feedback on whether it would be helpful for the Working Group to make a recommendation on a successor rate to GBP LIBOR for bonds...
PSR consults on better consumer protection
The PSR is calling for views on: how to mandate reimbursing victims of APP scams: It thinks that a combination of requiring banks and building societies to publish their APP scam data, having a standardised approach to...